Issue 123:

Hello,

Welcome to the latest edition of our newsletter, keeping you informed about the most pressing updates and insightful stories shaping Ethiopia's innovation landscape.

In this edition, we delve into the critical issue of access to finance for small businesses and explore potential solutions. We also explore exciting developments in regulatory sandboxes and learn valuable lessons from a recent startup closure.

Addis Ababa Chamber Partners with Dubai's ICRA Rating to Launch Credit Rating ServiceThe Addis Abeba Chamber in partnership with Dubai's ICRA Rating is launching a credit rating service. According to Fortune Newspaper, the move promises to boost the country's budding capital markets, offering a hopeful financial horizon for businesses. Read More.

Ethiopian Software Development firm Addis Software Secures Investment from Tokyo-based VC Firm, ICJAddis Software, a software development company focusing on custom software solutions, mobile apps, and web development, has announced a capital investment from Inclusion Japan, a Tokiyo-based Venture Capital firm, promoting social impact investments.  Read More.

How a Mother of Two Built a Successful Business Selling Handmade Baby ClothesTsion Eticha, a mother of two, is the co-founder of Wolfaby, an Ethiopian-origin brand specializing in designing contemporary baby clothing and associated products. Originally conceived as a hobby during her pregnancy, Wolfaby, now sells over 200 items per month. Read More.

Subscription Stumble: Ethiopian Ecommerce Platform Berbera Learns Hard Lessons, Seeks Reinvention After ClosureIn our first edition of Shega Forensics, which delves into the failures of startups, products, and business models in our ecosystem, we sit down with Berbera Market, an e-commerce platform that recently shut down its operations. Read More.

Labor Minister Blames Banks for Withholding SME Credit, Seeks Help From ParliamentOfficials at the Ministry of Labor and Skills have accused commercial banks of failing to provide adequate levels of credit to small enterprises and requested Parliament’s assistance in ensuring equitable access to finance.The Reporter Newspaper stated that the federal government has directed commercial banks to channel at least 10 percent of their annual loan disbursements to SMEs, doubling the previous threshold. Yet, banks have failed to avail the promised credit over the first half of the fiscal year that began in July 2023. Read More.

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Ethiopia Launches Regulatory Sandbox to Accelerate Financial InnovationThe Innovative Finance Lab (IFL) officially launches Ethiopia’s Regulatory Sandbox, which will allow innovative firms to test their products and services in a controlled environment before market launch. Read More.

Ethiopian Fintech Startup Arifpay to Raise 160 Million Birr in Second Funding RoundEthiopian fintech startup Arifpay is raising 160 million birr (2.8 million dollars) in what marks the company’s second round of funding. Read More.

Commission Eyes Digital Solution to Education Credential Dilemma In Civil ServiceThe Federal Civil Service Commission has announced plans to launch a software application to verify the educational credentials of civil servants. Read More.

Local Foundation Seeks to Unlock Ethiopia’s Web3 Future with Extensive Developer Training ProgramThe Ethiopian Web3 Foundation, in collaboration with partners, is aiming to propel Ethiopia into the Web3 arena with the introduction of Ethiopia’s largest Web3 education program to date. Read More.

Renew Capital Achieves Investment Milestone, Launches Next Pan-African Tech FundFollowing the closing and deployment of capital from Renew Venture Lab Fund 1, Renew Capital is now launching Renew Venture Lab Fund 2 (RVL2). This fund is designed to invest in up to 50 tech startups across Africa, offering training and support to founders and their teams. Read More.

Here is what we've been reading:

They wanted careers in tech. They’re stuck as TikTok moderatorsCashless ATMs: Nigeria struggles to keep up with growing demandSora, OpenAI's new text-to-video tool, is causing excitement and fears. If you are here because someone forwarded you this email, you can subscribe here to get future newsletters.